US Dollar Forecast – US Dollar Risks Plunge as SPX Hits a Record, EURUSD Tests 1.3800
The dollar’s recovery effort fell apart this past week as a record push for the S&P 500 spawned ‘risk appetite’ headlines and the market’s Taper interests continued to fade.
British Pound Forecast – GBP to Target Higher High on BoE Policy Outlook; 1.6850-60 in Sight
The British Pound looks well on its way to fresh highs as we see a growing number of Bank of England (BoE) officials prepare U.K. households for an imminent rise in borrowing costs.
Japanese Yen Forecast – Yen Crosses May Revive Equities Correlation…On a Collapse
The Japanese yen put in for a mixed performance this past week versus its major counterparts. Yet, such a performance is much more disconcerting than the benign picture it seems to put on.
Australian Dollar Forecast – AUD vulnerable as Risk Sentiment Sours Anew
The week ahead promises to be action-packed for the Australian Dollar, with a slew of catalysts on the domestic and the global front due to cross the wires.
Gold Forecast – Gold at Resistance Heading Into March- All Eyes on Central Banks, NFPs
Gold prices were virtually unchanged on the week with prices holding just below key resistance to trade at $1322 ahead of the New York close on Friday.
How does a Currency War affect your FX trading?
Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.
Forex Weekly Trading Forecast: Risk Trends Breakout before a Week of NFPs and ECB
The report about Canada’s economic growth was mixed and did not provide a clear picture of the nation’s economic health. As a result, the Canadian dollar rose against its US peer, fell versus the euro and was little changed against the Japanese yen.
The Polish zloty gained today as nation’s economic growth accelerating, demonstrating that the economy is on track to recovery. The data suggests that an interest rate hike may happen very soon, adding to the attractiveness of the currency.
The Australian dollar slipped today, falling against the Japanese yen, as most fundamentals were not in favor of risk-related currencies. The Aussie was almost flat against its US counterpart, which was hurt by poor economic reports from the United States.
The Japanese yen rallied against the US dollar yesterday and continue to gain today as the political turmoil in Ukraine feeds the risk-negative mood on financial markets. The currency also rallied against the euro and the Great Britain pound.
The US dollar fell today as economic data from the United States was negative yet again. The currency dropped despite the risk-aversion sentiment on the Forex market and signs that the Federal Reserve will continue to reduce monetary stimulus.
The Brazilian real rose today after Brazil’s central bank raised the Selic rate yesterday, extending the string of rate increases. The increase was smaller than last month’s one, leading to concerns that the central bank will pause rate hikes. Still, the nation’s economy looks good, meaning that Brazil’s currency is still attractive to overseas investors.
Eurozone lending continues to be a problem, and that has some thinking that the ECB will have no choice but to ease monetary policy further when they meet next week. It’s also not helping that China is slowing down, and that it appears that Germany isn’t going to be able to kickstart the economy all on its own.